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Intergenerational Income Mobility in Singapore

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  • Ng Irene

    () (National University of Singapore)

Abstract

Research on intergenerational earnings mobility in less developed economies is lacking. This paper investigates the case of Singapore, a newly-industrialized economy in Asia. Interval regressions are employed because of grouped dependent variables. Instrumental variables address problems of respondent errors and unobserved permanent income. Still, the estimated intergenerational elasticity of between 0.23 and 0.28 is probably under-estimated because the study uses a survey of young respondents who reported contemporaneous incomes of parents. Transformation of the estimates using scales in recent comparative studies indicates that intergenerational earnings mobility in Singapore may be moderately low when compared internationally. Education as a means through which parents invest in their children's future earnings appears important. There are some small independent returns from schooling. Mobility does not appear to differ by ethnicity, sex or income. These findings have important implications for equity, development and policy in Singapore, which has rising income disparity, a maturing economy, and an educational system which is increasingly privately run.

Suggested Citation

  • Ng Irene, 2007. "Intergenerational Income Mobility in Singapore," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-35, October.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:2:n:3
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    References listed on IDEAS

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    Cited by:

    1. Ueda Atsuko, 2009. "Intergenerational Mobility of Earnings and Income in Japan," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-27.
    2. Ng, Irene Y.H. & Shen, Xiaoyi & Ho, Kong Weng, 2009. "Intergenerational earnings mobility in Singapore and the United States," Journal of Asian Economics, Elsevier, pages 110-119.
    3. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    4. Fengye Sun & Atsuko Ueda, 2015. "Intergenerational earnings mobility in Taiwan," Economics Bulletin, AccessEcon, vol. 35(1), pages 187-197.
    5. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 5272, Victoria University of Wellington, School of Economics and Finance.

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